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Lending for new builds is down, but financing for buying established homes is stronger.
The latest lending figures from the Australian Bureau of Statistics for November found new housing loans were up by 1.8 per cent, seasonally adjusted.
However, when it came to new construction, it mirrored the latest news of the number of new homes being built; loans have slid back by 8.4 per cent, which is its lowest level since 2012, HIA senior economist Geordan Murray said.
“The weakness in construction lending in November is largely a legacy of the very soft sales volumes that home builders were experiencing during the first half of the year,” he said.
However, the improvement of the market in the second part of 2019 led to an increase in lending for existing home purchases.
“Investor activity remains subdued, with the total value of new lending to investors (excluding refinancing) around half the level it reached back in 2015. However, the lending figures provide an early sign that investors may be returning to the market,” Mr Murray said.
“Investor lending increased by 2.2 per cent in November and has risen by around 10 per cent from the low point registered earlier in the year.”
REIA president Adrian Kelly noted there had been a decrease in the number of loans for first home buyers.
“The number of loans to first home buyers decreased by 0.9 [of a percentage point] while the proportion of first home buyers, as part of the total owner-occupied housing finance commitments, was 29.7 per cent.”
He also pointed out that the number of first home buyers who have committed to loans has dropped in the last two months, and that comes after a period of growth.
“The finance commitments for November reflect a continuing interest and boost in confidence in the real estate market in the later part of 2019,” Mr Kelly said.
